Healthy competition between Mengniu and Yili, two dairy industry giants, makes the dairy industry of Inner Mongolia sustainable, the Economic Information Daily reported.   According to the statistics of China Dairy Industry Association, Inner Monolia's dairy production jumped to the top of the country with Eili and Mengniu’s revenue totaling 240 million yuan, which is more than 25 percent of the country’s total annual revenue.   Pan Gang, CEO of Eili Group, said that competition in the market, especially with Mengniu, pressures the company to continually strive high-level maintenance and improvement of the company’s operation, marketing strategy, production quality and efficiency. It is competition that gives the company the constant to need evolve.   To avoid repetitive products and gain new market share, Eili and Mengniu have started to develop more innovative product lines. Price wars are no longer the means to compete. When Mengniu launched high-end pure milk product, Eili tried to develop the added value product, LCG.  When Eili constructs a new yogurt production line, Mengniu cultivates partnership with foreign investor to develop milk powder.   Such competition gives rise to the dairy industry in Inner Mongolia. An extensive supply chain has developed with Baotao and Huhhot as the centres. Apart from the two local giants, Shanghai Everbright Dairy, Beijing Sanyuan Dairy and other companies from Fujian and Hebei have developed their own supply chains in the area.